By Barb McKay

Consistently high gas prices, compared to neighbouring communities, could eventually impact tourism in Kincardine, according to the head of the region’s economic development corporation.

In December, Team Kincardine, which is comprised of the Penetangore Regional Economic Development Corporation (PREDC), Kincardine BIA and Kincardine and District Chamber of Commerce, was asked by Kincardine council to investigate why gas prices in the municipality are higher than prices in surrounding municipalities.

In an email to The Independent last week, PREDC executive director Gerry Taylor explained that Team Kincardine had tracked gas prices in Kincardine, Port Elgin, Goderich, Walkerton, Hanover and Owen Sound between Dec. 14, 2012 and Jan. 25. A direct comparison showed that gas prices in Kincardine were consistently higher than the other communities; on some days as much as 11 cents higher. Only on Jan. 11 and 14 were Kincardine gas prices in line with Port Elgin and Owen Sound.

“I am concerned with trying to understand what the duration of these high gas prices will be in our community,” Taylor said. “We know that some people are now travelling out of town to get cheaper gas,

however, they are also spending additional finances on grocery and other discretionary items. This is economic leakage out of our community.”

Taylor said Team Kincardine is currently working to set up meetings with Huron-Bruce MP Ben Lobb and MPP Lisa Thompson to discuss potential actions to deal with the issue. It also plans to send letters to each gas company in Kincardine to determine their price fixing protocols. Taylor said Team Kincardine is considering a community and consumer gas petition that would validate the concerns of residents.

One issue Kincardine faces is the fact that there is no independent gas station that has the ability to set lower prices, which would in turn trigger competitors to lower their prices. Taylor noted that there are still questions that Team Kincardine is looking for answers to.

“If the duration of higher prices becomes extended, local consumer spending habits will change, leading to an established impact on our local economy,” he said. “We need to know if this is a short-term or long-term issue as we will be fast approaching our tourism season. Over time, if Kincardine establishes itself with a well-known reputation for high local gas prices, we may lose tourists as well.”